Submission 10 – MVSA Review 2014
To whom it may concern,
In regards to the 2014 review of the Motor Vehicle Standards Act 1989 in particular to reducing the barriers to personal
importation of new vehicles and the importation of quality second hand vehicles:
We have long discussed this particular issue and the large discrepancy in prices between the Australian market and any
overseas market for better quality or so called luxury cars.
Through research over an extended time period, spanning some years, it is obvious that the costs of these vehicles in
Australia is actually double or more what the cost is for the same vehicle elsewhere. These cars come out of the same
factory, with the same environmental and safety standards and same manufacturing quality, so why is it that Australians
that want to enjoy a better, safer and cleaner driving experience are penalised so heavily?
Sadly the reason seems to be that the ‘Australia Tax’ so widely spoken about seems to be running rampant within the
automotive industry. The fact is that dealers have a monopoly over the importation and availability of higher specification
cars are able to charge the public a ridiculous premium simply because there is no choice for the consumer.
Many of the press releases regarding this deregulation of importing good quality cars have been initiated by the dealers
themselves, no doubt running scared because the days of huge profit margins from gouging their customers seem to be
slipping away from them. Their arguments are flawed; the public, if allowed to import cars from international sources, will
not be bringing in (in that majority) old, unsafe and environmentally irresponsible vehicles. They will instead be importing
high end, safer and more environmentally responsible cars made affordable to them because they do not have to pay
dealers premiums.
The vehicle industry as it is today will still benefit from their ability to mass import making the cost of importing each
vehicle much less than that of the average person who will, most likely, import a single vehicle at full cost. They will still
have the advantage of bulk purchasing directly from the manufacturer, an advantage that is not likely to be afforded to a
single buyer. They will still be able to register cars in the same way as they have previously done and private importers will
still have to have their cars declared safe for Australian roads prior to registration. Cars that are imported will still need
regular servicing and spare parts; these are functions that many dealers offer and can still make regular income on.
The largest alteration to the vehicle market in Australia, if this deregulation occurs will be that of honesty. Dealers being
forced to deal honestly with their customers and pricing their vehicles at a reasonable, affordable cost that will still make
them a profit.
The opportunity for average Australians to afford a better quality, safer, lower emission vehicle can only be advantageous
for every Australian and our environment.
I have no objections to this paper or my name being made publicly available. I have made my details available below if
there is any reason that you would wish to contact me.
Thank you for your time and the opportunity to submit my thoughts on this subject.
Regards
Christiaan Roos